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Are Investors Undervaluing Hitachi (HTHIY) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Hitachi (HTHIY - Free Report) is a stock many investors are watching right now. HTHIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.29 right now. For comparison, its industry sports an average P/E of 20.22. Over the past year, HTHIY's Forward P/E has been as high as 13.32 and as low as 7.88, with a median of 9.84.
We also note that HTHIY holds a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HTHIY's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, HTHIY's PEG has been as high as 2.92 and as low as 1.63, with a median of 1.97.
Investors should also recognize that HTHIY has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.23. Within the past 52 weeks, HTHIY's P/B has been as high as 1.37 and as low as 0.92, with a median of 1.13.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HTHIY has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.09.
Finally, investors should note that HTHIY has a P/CF ratio of 6.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.35. HTHIY's P/CF has been as high as 6.87 and as low as 3.86, with a median of 5.35, all within the past year.
These are only a few of the key metrics included in Hitachi's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HTHIY looks like an impressive value stock at the moment.
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Are Investors Undervaluing Hitachi (HTHIY) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Hitachi (HTHIY - Free Report) is a stock many investors are watching right now. HTHIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.29 right now. For comparison, its industry sports an average P/E of 20.22. Over the past year, HTHIY's Forward P/E has been as high as 13.32 and as low as 7.88, with a median of 9.84.
We also note that HTHIY holds a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HTHIY's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, HTHIY's PEG has been as high as 2.92 and as low as 1.63, with a median of 1.97.
Investors should also recognize that HTHIY has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.23. Within the past 52 weeks, HTHIY's P/B has been as high as 1.37 and as low as 0.92, with a median of 1.13.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HTHIY has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.09.
Finally, investors should note that HTHIY has a P/CF ratio of 6.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.35. HTHIY's P/CF has been as high as 6.87 and as low as 3.86, with a median of 5.35, all within the past year.
These are only a few of the key metrics included in Hitachi's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HTHIY looks like an impressive value stock at the moment.